Overview

• SEC staff have begun drafting comprehensive rule proposals on digital asset distribution, custody and trading under Project Crypto.
• A principles-based innovation exemption is in development to fast-track novel blockchain business models that fall outside existing regulations.
• Clear standards for categorizing crypto assets—including commodities, stablecoins, collectibles and security-like tokens—are being crafted to reduce reliance on the Howey Test.
• Plans include on-chain integration mandates to support tokenization of traditional securities and enable blockchain-based market infrastructure.
• The agency has opened the proposals to a public notice-and-comment period and will engage stakeholders through consultations with the Crypto Task Force.